Category: Regulation and Incentives

Refundable Federal EV tax credit-featured image

Proposed Changes to Federal EV Tax Credit – Part 5: Making the Credit Refundable

One of the biggest complaints about the federal electric vehicle (EV) tax credit (IRC 30D) is that its structure of using a non-refundable tax credit is clearly more beneficial to higher-income households. But Congress may actually get something right (well mostly) as among the nine key proposed changes to the tax credit contained in the Clean Energy for America Act (CEAA) is changing the current non-refundable credit into one that is refundable.

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Current-Federal-EV-tax-credit-formula-sample-EVs

Fixing the Federal EV Tax Credit Flaws: Redesigning the Vehicle Credit Formula

The federal EV tax credit has a number of flaws, but one of the biggest is the poorly-designed formula that determines the amount of the tax credit available for each BEV and PHEV sold in the US. The formula, which is based on the size of an EV’s battery pack, rewards OEMs (and their buying consumers) for using larger batteries with no consideration to efficiency (EPA range/kWh) and price.

Read More
Refundable Federal EV tax credit-featured image

Proposed Changes to Federal EV Tax Credit – Part 5: Making the Credit Refundable

One of the biggest complaints about the federal electric vehicle (EV) tax credit (IRC 30D) is that its structure of using a non-refundable tax credit is clearly more beneficial to higher-income households. But Congress may actually get something right (well mostly) as among the nine key proposed changes to the tax credit contained in the Clean Energy for America Act (CEAA) is changing the current non-refundable credit into one that is refundable.

Read More
Current-Federal-EV-tax-credit-formula-sample-EVs

Fixing the Federal EV Tax Credit Flaws: Redesigning the Vehicle Credit Formula

The federal EV tax credit has a number of flaws, but one of the biggest is the poorly-designed formula that determines the amount of the tax credit available for each BEV and PHEV sold in the US. The formula, which is based on the size of an EV’s battery pack, rewards OEMs (and their buying consumers) for using larger batteries with no consideration to efficiency (EPA range/kWh) and price.

Read More